Question
I am approaching five years with my employer and want to know how my gratuity amount will be worked out.
Answer
You become eligible for gratuity after 5 years of continuous service with the same employer (the 5-year rule is waived in case of death or disablement). For establishments covered by the Payment of Gratuity Act, the formula is (last drawn basic plus DA) multiplied by 15 multiplied by completed years of service, divided by 26. So for Rs 50,000 basic and 10 years, gratuity is about Rs 2.88 lakh. Service beyond six months in the final year is rounded up to a full year. Estimate your payout with our gratuity calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.